Indian government's restrictive approach towards the crypto sector has hindered, but not been able to entirely fail its expansion in the tech-friendly sub-continent. In a new report, KuCoin crypto exchange has claimed that India currently has over 115 million crypto investors, making for 15 percent of its massive population. Majority Indian crypto investors are aged between 18 to 60. At this point, India does not allow the use of crypto assets as payment alternatives. Trading, purchase, or sale of crypto assets however, is permitted in India under a tax regime that went live earlier this year.
The Indian crypto market is expected to reach the valuation of $241 million (roughly Rs. 1,924 crore) by 2030, KuCoin said in its report titled The Cryptoverse Report India.
Another 10 percent of Indian adults are crypto-curious consumers who are planning to invest in crypto in the coming six months, the report claimed, while addressing certain concerns that Indians have expressed around experimenting with cryptocurrencies.
“A lack of sufficient knowledge of the crypto market is reflected by 41 percent of respondents who state that they are not sure which types of crypto investment products to choose, 37 percent have difficulty managing the risk of their portfolios, and 27 percent have trouble predicting the market directions and values of crypto. Meanwhile, 21 percent are not clear about how crypto works,” the report added.
Another key factor that is keeping people from investing in crypto is regulatory uncertainty prevailing in the country, as well as fears of losing their funds to hack attacks.
“33 percent report that government regulation is a concern when considering investing in crypto. The safety of investing in crypto is also a concern for many, as 26 percent worry about hackers being a threat, and 23 percent fear that they may not get their money back in case of security incidents,” the report noted.
Out of the 2042 Indian adults surveyed by KuCoin, 56 percent investors believe crypto is the future of finance and 54 percent believe they will rope-in higher returns on long-term investments.
Among young Indians, 24 percent investors are dabbling in the sector owing to the crypto hype.
Unfortunately, India did not make it to the list of countries, that have taken crypto-friendly measures to contribute to the growth of this nascent industry.
In the latest ‘Worldwide Crypto Readiness Report', Forex Suggest claimed that Hong Kong, followed by the US and Switzerland are the world's top three most crypto-ready nations, respectively.
Indian crypto traders are struggling to see profits after paying a 30 percent tax on transactions of virtual digital assets. This rule went live in April.
Starting July, Indians have also begun to see one percent tax deductions on each crypto transaction. This essentially means that one percent TDS is being levied on every purchase and deposit of crypto assets, thus increasing the pressure on investors.
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